Power Integrations (POWI) Earnings Transcript

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Feb. 5, 2026, 4:30 p.m. ET

• Chief Executive Officer — Jennifer Lloyd

• Chief Financial Officer — Nancy Erba

Jennifer Lloyd: Thanks, Joe, and bully afternoon, everybody. Overall, our 4th fourth results were mostly successful enactment with our expectations with a gross of $103 cardinal and non-GAAP net of $0.23 per share. I'm besides pleased to study that we returned to maturation successful 2025. Full twelvemonth gross was up 6%, non-GAAP EPS grew by 8%, and we generated $112 cardinal of currency travel from operations, up $30 cardinal from the anterior year. Last quarter, I shared that OpEx power would beryllium an contiguous priority, and we demonstrated that successful Q4, reducing non-GAAP expenses by much than $2 cardinal from the anterior quarter.

We are announcing contiguous that we carried retired a restructuring earlier this week, reducing our planetary workforce by astir 7%. While specified decisions are difficult, we took this enactment to amended align expenses with revenue. This creates flexibility to put successful products, radical and markets that volition make semipermanent worth for shareholders. Looking astatine caller concern trends, booking improved importantly successful Q4 aft slowing successful the anterior quarter, partially arsenic a effect of excess appliance inventory shipped into the U.S. past twelvemonth up of the tariffs. Encouragingly, the largest U.S. appliance OEM reported past week that this preloaded inventory has mostly dissipated.

Part of the caller betterment successful orders relates to appliances, and we expect sequential maturation successful our user class successful Q1. However, our broader presumption is that appliance request continues to look headwinds, including debased existing location income successful the U.S., the effect of tariffs connected appliance prices and ongoing softness successful China housing. The concern marketplace has been a cardinal operator of the caller uptick successful bookings, and we expect concern to beryllium our fastest-growing marketplace again successful 2026, starting with a beardown Q1. Overall, we generated 10% maturation successful plan triumph worth successful 2025 with peculiar spot successful GaN and high-power products.

We are besides encouraged by customers' effect to our caller TinySwitch-5 ICs with a steadfast pipeline of designs scheduled to statesman accumulation successful the 2nd fractional of 2026. Additionally, our multi-output GaN-based InnoMux-2 integrated circuits are seeing beardown plan traction successful the TV market. These and different upcoming products volition alteration america to prolong and turn our halfway IC concern adjacent arsenic we displacement our concern priorities towards markets similar AI information center, concern and automotive, wherever our expertise is helping customers lick their toughest powerfulness challenges. Advanced high-voltage technologies are indispensable to the emerging powerfulness ecosystem.